A consumer advocacy group in the Davao Region is urging government leaders to take immediate action to ease the burden of rising fuel prices, warning that prolonged increases could significantly impact household spending and the broader local economy.
In a statement, the Davao Consumer Movement (DCM) called on policymakers to implement swift measures as global oil prices continue to climb due to geopolitical tensions in the Middle East.
The group said the steady rise in diesel, gasoline, and kerosene prices is expected to drive up transportation costs and the prices of basic goods, putting additional pressure on families already struggling with tight budgets.
On March 3, fuel retailers implemented another round of price adjustments, raising gasoline by P1.90 per liter, diesel by P1.20 per liter, and kerosene by P1.50 per liter.
The increases marked the eighth consecutive week of hikes for gasoline, the tenth straight week for diesel, and the ninth week for kerosene, reflecting continued volatility in the international oil market.
Based on monitoring using the Mean of Platts Singapore (MOPS), the group said diesel prices could rise by P4 to as much as P19 per liter in the coming week, while gasoline may increase by P2 to P7.70 per liter and kerosene by up to P31 per liter.
“These relentless increases are deeply concerning, as they will inevitably drive up the cost of goods and services. If nothing is done, the already thin budgets of many households will be stretched even further. The government must act swiftly and proactively to cushion the impacts of this external conflict on our local economy,” the group said.
To cushion consumers from the impact, the group urged the government to temporarily suspend fuel-related taxes under Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which imposes excise taxes of P10 per liter on gasoline, P6 per liter on diesel, and P5 per liter on kerosene, as well as P3 per kilogram on liquefied petroleum gas (LPG).
The organization also recommended suspending the 12 percent value-added tax (VAT) on fuel products to immediately reduce pump prices.
“Subsidies should also extend to the transport sector to prevent fare hikes. Raising base fares is a band-aid solution that benefits only one sector while leaving commuters burdened. Finally, the government must keep a close watch on both big and small fuel companies, particularly in far-flung areas, to prevent abuse. In times like these, there will always be attempts to take advantage of the situation at the expense of consumers,” the group stated.
Beyond tax relief, the group said the government should introduce targeted subsidies for sectors heavily affected by rising fuel costs, particularly farmers, food producers, and those involved in transporting agricultural goods. It also called for financial support for the public transport sector to prevent fare increases that could further burden commuters.
At the same time, the group urged regulators to strengthen oversight of fuel companies, especially in remote areas, to prevent possible price manipulation or profiteering during periods of market instability.
The organization emphasized that government leaders must prioritize economic stability and act decisively to protect Filipino households from the ripple effects of global conflicts on the domestic economy.
